Will I Have to Turn Over My Cell Phone in a Chapter 7 Bankruptcy?
If you are considering filing for Chapter 7 bankruptcy, you may already know that Chapter 7 is a type of liquidation bankruptcy. What this means is that the bankruptcy trustee will liquidate (i.e., sell) all of your non-exempt assets in order to repay creditors so that you can be eligible for a debt discharge. When people hear about the liquidation process in a Chapter 7 bankruptcy, they can get worried about whether they will lose assets that they need for their daily lives, from a motor vehicle to get to work to a cell phone to communicate with others both personally and professionally. As such, you might be wondering if your cell phone will need to be liquidated as part of your Chapter 7 bankruptcy case.
Generally speaking, most people who are going through a Chapter 7 bankruptcy will be able to use one of the Illinois bankruptcy exemptions in order to keep their smartphone. However, it is important to learn more about how this will work.
Your Smartphone Might be a High-Value Asset
Depending upon the type of cell phone you have, it could be an asset that is quite valuable. According to Tech News World, the average cost of a smart phone in the U.S. is over $500, but some consumers pay $1,500 or more for a smartphone. Some smart phones made by Apple and Samsung are priced at around $2,000, and people are buying them. All of that is to say that your cell phone could be a high-value asset that could be liquidated if you do not use a bankruptcy exemption in order to keep it.
Bankruptcy Exemptions and Personal Property
Under Illinois law, debtors in Oak Park and throughout the state must use Illinois bankruptcy exemptions—as opposed to federal exemptions—in a Chapter 7 bankruptcy case. Illinois has a specific set of personal property exemptions, but it is important to note that the law does not expressly list a cell phone as an exempt item of personal property. Rather, the statute lists property like necessary apparel, school and professional books, family photos, health aids, and other similar types of personal property.
Yet just because a cell phone or smartphone is not expressly identified does not mean that you cannot exempt it in your Chapter 7 bankruptcy case. Within the personal property exemptions, there is a “wildcard” exemption that allows you to exempt up to $4,000 of personal property that is not otherwise covered by the exemptions. You can use the wildcard exemption to keep your cell phone, but keep in mind that a particularly expensive smartphone could require you to use up a large portion of your wildcard exemption.
Contact Our Oak Park Bankruptcy Attorneys
If you have questions or concerns about your Chapter 7 bankruptcy case or how Illinois bankruptcy exemptions will apply to you, it is important to seek assistance from an experienced Oak Park bankruptcy lawyer. Do not hesitate to get in touch with our firm to learn more about how we can help. Contact the Emerson Law Firm today for more information.
See Related Blog Posts:
Can a Debt Collector File a Lawsuit Against Me for Old Debt?
Bankruptcy Filings at Lowest in 15 Years
Generally speaking, most people who are going through a Chapter 7 bankruptcy will be able to use one of the Illinois bankruptcy exemptions in order to keep their smartphone. However, it is important to learn more about how this will work.
Your Smartphone Might be a High-Value Asset
Depending upon the type of cell phone you have, it could be an asset that is quite valuable. According to Tech News World, the average cost of a smart phone in the U.S. is over $500, but some consumers pay $1,500 or more for a smartphone. Some smart phones made by Apple and Samsung are priced at around $2,000, and people are buying them. All of that is to say that your cell phone could be a high-value asset that could be liquidated if you do not use a bankruptcy exemption in order to keep it.
Bankruptcy Exemptions and Personal Property
Under Illinois law, debtors in Oak Park and throughout the state must use Illinois bankruptcy exemptions—as opposed to federal exemptions—in a Chapter 7 bankruptcy case. Illinois has a specific set of personal property exemptions, but it is important to note that the law does not expressly list a cell phone as an exempt item of personal property. Rather, the statute lists property like necessary apparel, school and professional books, family photos, health aids, and other similar types of personal property.
Yet just because a cell phone or smartphone is not expressly identified does not mean that you cannot exempt it in your Chapter 7 bankruptcy case. Within the personal property exemptions, there is a “wildcard” exemption that allows you to exempt up to $4,000 of personal property that is not otherwise covered by the exemptions. You can use the wildcard exemption to keep your cell phone, but keep in mind that a particularly expensive smartphone could require you to use up a large portion of your wildcard exemption.
Contact Our Oak Park Bankruptcy Attorneys
If you have questions or concerns about your Chapter 7 bankruptcy case or how Illinois bankruptcy exemptions will apply to you, it is important to seek assistance from an experienced Oak Park bankruptcy lawyer. Do not hesitate to get in touch with our firm to learn more about how we can help. Contact the Emerson Law Firm today for more information.
See Related Blog Posts:
Can a Debt Collector File a Lawsuit Against Me for Old Debt?
Bankruptcy Filings at Lowest in 15 Years
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